Filipinos more optimistic as inflation fears fade

Philippine consumer sentiment showed a sharp rebound in the third quarter of the year, with optimism hitting levels not seen in nearly two years, driven by improving job prospects and decline in long-term inflation fears, according to the Bangko Sentral ng Pilipinas (BSP).

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Based on the latest Consumer Expectations Survey (CES), the overall confidence index (CI) for the current quarter rose to -9.8 percent in Jully to September, from -14 percent in the prior quarter. This marked the highest reading since the final quarter of 2023.

Looking ahead, consumer outlook for the final three months turned decisively positive, surging to 6.9 percent from 0.6 percent. The long-term 12-month outlook similarly strengthened to 14.1 percent.

Consumers cited clear economic motivators for the shift: expectations of new income sources, higher earnings, and more employment opportunities were consistently listed as primary drivers. The family income sub-index has now maintained a positive reading for three straight quarters, climbing to 2.2 percent from 1.6 percent, underscoring sustained confidence in future household cash inflows.

Inflation fears recede